Dakota Gold Announces Pricing of Offering of Common Stock for Gross Proceeds of Approximately $35 Million

Rhea-AI Summary

Dakota Gold Corp. (NYSE American: DC) has announced the pricing of its public offering of 12.4 million shares of common stock, expected to close around March 24, 2025. The offering will generate gross proceeds of approximately $35 million, potentially reaching $40 million if underwriters exercise their 30-day option to purchase up to 1.86 million additional shares.

BMO Capital Markets leads as book-running manager, with Canaccord Genuity as book-running manager and CIBC Capital Markets, RBC Capital Markets, Scotiabank, and Agentis Capital Markets Partnership serving as co-managers. The company plans to use the net proceeds for working capital and general corporate purposes.

Positive

• Significant capital raise of $35 million with potential for $40 million
• Strong underwriting syndicate including major financial institutions

Negative

• Potential dilution for existing shareholders through 12.4 million new shares
• Additional dilution possible through 1.86 million share underwriter option

News Market Reaction

-8.79%

1 alert

-8.79% News Effect

On the day this news was published, DC declined 8.79%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Lead, South Dakota--(Newsfile Corp. - March 20, 2025) - Dakota Gold Corp. (NYSE American: DC) ("Dakota Gold" or the "Company") today announced the pricing of its previously announced public offering of 12,400,000 shares of its common stock, par value $0.001 (the "Common Shares") in the United States (the "Offering"). The Offering is expected to close on or about March 24, 2025 and is subject to the Company receiving all necessary regulatory approvals, including the approval of the NYSE American.

The gross proceeds to Dakota Gold from the Offering, before deducting expenses, will be approximately $35 million, or approximately $40 million if the Underwriters exercise the Option (as defined below) in full.

The Company expects to use the net proceeds of the Offering for working capital and other general corporate purposes.

The Common Shares will be offered by the Company with BMO Capital Markets acting as lead book-running manager, Canaccord Genuity acting as book-running manager and CIBC Capital Markets, RBC Capital Markets, Scotiabank and Agentis Capital Markets Limited Partnership acting as co-managers (collectively, the "Underwriters").

Dakota Gold has also granted the Underwriters an option (the "Option") to purchase up to an additional 1,860,000 Common Shares representing up to 15% of the number of Common Shares to be sold pursuant to the Offering. The Option is exercisable for a period of 30 days from the date of the Underwriting Agreement, dated March 20, 2025, between Dakota Gold and BMO Capital Markets, as representative of the several Underwriters (the "Underwriting Agreement").

The Offering to the public in the United States is being made pursuant to the Company's effective shelf registration statement on Form S-3, including a base prospectus, previously filed with the Securities and Exchange Commission (the "SEC"). The Offering in the United States will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended. You may obtain these documents for free by visiting EDGAR on the SEC's website at www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and the base prospectus may be obtained by contacting BMO Capital Markets Corp., Attn: Equity Syndicate Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036.

This news release does not constitute an offer to sell or the solicitation of an offer to buy shares of Dakota Gold's common stock, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Dakota Gold Corp.

Dakota Gold is a South Dakota-based responsible gold exploration and development company with a specific focus on revitalizing the Homestake District in Lead, South Dakota. Dakota Gold has high-caliber gold mineral properties covering over 48 thousand acres surrounding the historic Homestake Mine.

For further information about Dakota Gold Corp., please contact:

Dr. Robert Quartermain
Co-Chair, Director, President and Chief Executive Officer
Tel: +1 778-655-9638

Carling Gaze
VP of Investor Relations and Corporate Communications
Tel: +1 605-679-7429
Email: info@dakotagoldcorp.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS OR INFORMATION

This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, disclosure regarding the conduct of the Offering; the granting of the Underwriters' over-allotment option; and the anticipated use of proceeds from the Offering. In certain cases, forward-looking statements can be identified by the use of words and phrases or variations of such words and phrases or statements such as "anticipate," "expect" "plan," "likely," "believe," "intend," "forecast," "project," "estimate," "potential," "could," "may," "will," "would" or "should." These forward-looking statements are based on assumptions and expectations that may not be realized and are inherently subject to numerous risks and uncertainties, which could cause actual results to differ materially from these statements. For additional information regarding factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the risk factors included in Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated by annual, quarterly and current reports that we file with the SEC, which are available at www.sec.gov. We caution investors not to place undue reliance on the forward-looking statements contained in this communication. These statements speak only as of the date of this communication, and we undertake no obligation to update or revise these statements, whether as a result of new information, future events or otherwise, except as may be required by law. We do not give any assurance that we will achieve our expectations.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/245514

FAQ

How much is Dakota Gold (DC) raising in their latest public offering?

Dakota Gold is raising approximately $35 million through a public offering of 12.4 million common shares, with potential to reach $40 million if underwriters exercise their option.

When will Dakota Gold's (DC) March 2025 public offering close?

The offering is expected to close on or about March 24, 2025, subject to regulatory approvals including NYSE American approval.

What is the underwriters' option in Dakota Gold's (DC) offering?

Underwriters have a 30-day option to purchase up to 1.86 million additional shares, representing 15% of the offered shares.

How will Dakota Gold (DC) use the proceeds from the March 2025 offering?

The company plans to use the net proceeds for working capital and other general corporate purposes.